Retirement Plans and Tax-Advantaged Accounts: Rapid Fire

What this video covers

• The five hallmarks of a qualified plan (Internal Revenue Code compliance, ERISA coverage, trust-held assets, non-discrimination, and contribution limits) and what executives sacrifice in non-qualified arrangements
• Why defined benefit means employer investment risk with Pension Benefit Guaranty Corporation (PBGC) backstop, while defined contribution shifts all risk to the employee with zero PBGC protection
• The 2026 elective deferral limit of $24,500 and how employer matching dollars count against the $72,000 total annual addition cap, not the employee's personal deferral
• Why the 457(b) governmental plan has no 10% early withdrawal penalty, a separate limit from 401(k)/403(b), but tax-exempt 457(b) plans cannot be rolled over and lack creditor protection
• Which penalty exceptions belong to employer plans only (age 55 separation from service), which belong to Individual Retirement Accounts (IRAs) only (first-time home, higher education), and how to keep the two lanes separate
• How a 60-day rollover triggers mandatory 20% withholding and why the participant must replace that 20% from outside funds to avoid a taxable distribution
• How net unrealized appreciation (NUA) converts years of ordinary-income growth into long-term capital gains when employer stock is distributed in kind, and the tax treatment spread at exercise for incentive stock options versus non-qualified stock options